Indorama Netherlands has entered into a definitive agreement with private equity firm Blackstone to buy a 24.9 per cent minority stake in EPL Limited, the Indian laminated tube manufacturer.
The sale is expected to be completed in the coming months, subject to customary closing conditions and approvals.
The stake would be acquired at a purchase price of INR 240 ($2.73) per share, with Indorama entitled to appoint a nominee director to the board of EPL at completion, the companies revealed.
Founded in 1982, EPL produces more than eight billion tubes annually in the oral care, beauty, cosmetics and pharmaceutical industries.
It operates 21 facilities across 11 countries and employs more than 3,500 staff.
“Over the last few years, in conjunction with the management team led by chief executive Anand Kripalu, we have helped build the business into one of the fastest-growing packaging companies worldwide,” said Amit Dixit, head of Asia private equity at Blackstone.
“EPL is now a global leader in sustainable packaging, supplying to some of leading brands across sectors. We are excited to welcome Indorama Ventures as an investor in EPL.”
Aloke Lohia, founder and group chief executive of Indorama Ventures, said EPL’s “innovative, high-quality packaging products” resonated with Indorama’s philosophy of investing in ‘attractive businesses with great future potential, globally as well as in India’.
Anand Kripalu, managing director and chief executive officer of EPL, added: “We are grateful for Blackstone’s support over the years and look forward to their continuing contribution in our journey.
“This partnership has resulted in meaningful growth by increasing presence in emerging markets, focusing on sustainable tubes, and increasing our market share in the fast-growing beauty, cosmetics, and pharmaceutical industries. We look forward to having Indorama Ventures, with global presence and expertise, as an investor in EPL.”
